How we set your rent - rent restructuring
Updated: 18 May 2010
What is rent restructuring?
The Government says that all social landlords (councils and housing associations) must use the same method for working out rent. This is called rent restructuring.
The aim of rent restructuring is that, by 2012, everyone in the country whose landlord is a council or hosuing association should have their rent set in the same way.
Eventually, two tenants living in similar properties in a similar area should be paying a similar rent, whoever their social landlord is.
How do we work out your rent?
Every property has a 'target rent', which is worked out using a formula set by the Government. All properties must reach their target rent by 2012.
We take account of various factoris in working out the target rent:
- the average wage in London;
- how much your home is worth;
- the number of bedrooms in your home.
How will you increase my rent in April 2010?
We work out how much your weekly rent will increase by in the following way.
Your current rent x (RPI + 0.5%) + up to £2 if your rent will not reach the target rent by 2012.
RPI is the retail price index, which is a measure of inflation. Under government regulations, the figure we use is the figure for the previous September (the RPI figure for September 2009 was -1.4%).
If your rent has reached the target rent you will receive a rent decrease of up to 0.9%.
To work out your new weekly rent, take your current weekly rent and divide it by 100, then multiply the result by -0.9. This will give you the change to your weekly rent. Add this figure to your current weekly rent to give you your total weekly rent for April 2010 to March 2011. Remember that we might add up to £2 to this if your rent will not reach the target rent by 2012.
How does this affect my rent and Housing Benefit?
If you receive full Housing Benefit, you will continue to have all of your rent paid, as long as your circumstances don't change.
If your Housing Benefit only covers part of your rent, then the amount you receive is likely to change.
Why is my neighbour's rent different?
Your neightbour's rent might be different because your house is worth more, for example you may have more bedrooms or a garden.
Further information
You can pay your rent in many different ways. Our leaflet called ‘Paying your rent’
tells you how.
If you are having problems paying your rent or are worried about falling into debt, please contact our income management team on 020 8709 4300. Our leaflet, ‘Problems with
paying your rent?’, also gives some helpful advice.
Problems with paying your rent? - rent arrears (272 KB)
If you have any further questions, you can contact our income management team on 020 8709 4300 or contact us by email.
Note
Sometimes rent restructuring does not apply or it might be delayed until a later date. For example, your rent might be protected by a previous agreement. If this is the case, we will let you know.
Rent restructuring - how we set your rent (1.0 MB)
Gateway residents 020 8709 4300
General enquiries 020 8709 4409